5.2.1 Regulation

Editor: Will Melling Writers: Bence Borbely, Trevor Chow, Tom Nott, Yang Zuo

price already exists in the UK for example181 and it should also be levied on imports at the border to reflect fair competition and high environmental standards. Helm suggests charging for other forms of pollution, such as that in rivers. However, as detailed in the ‘Water quality’ section of this paper, this would be over-punitive on farmers, as well as difficult to measure and implement. Through applying the SICS proposed in this paper for Tier 1, reducing river pollution in the form of chemicals, silt and slurry could be incentivised, whilst working constructively with farmers as the government desire.

This proposal balances pragmatism in what to charge and how, without being over punitive on farmers or negatively affecting farmer livelihoods. The cost of inputs like fertilisers should be levied on producers, as the charged by the manufacturer plus the environmental cost of energy-intensive production and the impacts of applying it182. The charge would be put back into the ELMS budget, so there would be no aggregate loss to the agricultural sector on the whole, farmers would receive the money when rewarded for practicing sustainable methods and providing public goods183 . It would be best to start with a low charge in the short run, but credibly commit to raising the tax in the medium to long-term, to give time and incentives to polluters to change their behaviours184 . Unlike the government idea of adjusting payments to farmers for Tier 1, the increasing pay-to-pollute charge over the next decade needs to be fixed, to provide clear market signals to business planners and allow them to plan over the long-term. However, adding pollution charges to fertilisers, pesticides and herbicides could have an immediate effect: decisions to buy and apply these, and the quantity applied, are made on a continuous basis185 .

5.2.1 Regulation

Not all pollution lends itself to charges, and in some cases identifying the polluter is so difficult that it is better to just regulate. All pollution charges should work in a broader regulatory context186 .

181 Dieter Helm, Green and Prosperous Land: A Blueprint for Rescuing the British Countryside (Harper Collins 2019) pp201 182 Dieter Helm, Green and Prosperous Land: A Blueprint for Rescuing the British Countryside (Harper Collins 2019) pp196 183 Dieter Helm, Green and Prosperous Land: A Blueprint for Rescuing the British Countryside (Harper Collins 2019) pp10 184 Dieter Helm, Green and Prosperous Land: A Blueprint for Rescuing the British Countryside (Harper Collins 2019) pp245 185 Dieter Helm, Green and Prosperous Land: A Blueprint for Rescuing the British Countryside (Harper Collins 2019) pp244 186 Dieter Helm, Green and Prosperous Land: A Blueprint for Rescuing the British Countryside (Harper Collins 2019) pp200